Correlation Between North Copper and Nexchip Semiconductor
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By analyzing existing cross correlation between North Copper Shanxi and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on North Copper and Nexchip Semiconductor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in North Copper with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and Nexchip Semiconductor.
Diversification Opportunities for North Copper and Nexchip Semiconductor
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between North and Nexchip is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and North Copper is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on North Copper Shanxi are associated (or correlated) with Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of North Copper i.e., North Copper and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between North Copper and Nexchip Semiconductor
Assuming the 90 days trading horizon North Copper is expected to generate 4.08 times less return on investment than Nexchip Semiconductor. But when comparing it to its historical volatility, North Copper Shanxi is 1.22 times less risky than Nexchip Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,467 in Nexchip Semiconductor Corp on November 3, 2024 and sell it today you would earn a total of 863.00 from holding Nexchip Semiconductor Corp or generate 58.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Copper Shanxi vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| North Copper Shanxi |
| Nexchip Semiconductor |
North Copper and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and Nexchip Semiconductor
The main advantage of trading using opposite North Copper and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper position performs unexpectedly, Nexchip Semiconductor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| North Copper vs. Bus Online Co | North Copper vs. Holitech Technology Co | North Copper vs. Gome Telecom Equipment | North Copper vs. Cultural Investment Holdings |
| Nexchip Semiconductor vs. Iat Automobile Technology | Nexchip Semiconductor vs. Hainan Mining Co | Nexchip Semiconductor vs. Haima Automobile Group | Nexchip Semiconductor vs. Chengtun Mining Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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